Stories about financial hardship and foreclosure are all too common in the United States at the moment. You may very well be one of the millions of homeowners in the country who are facing the very real threat of losing their homes. The process of forbearance can prove useful to you when you are finding it difficult to keep up with your mortgage payments.
It is a strategy that is particularly useful when delinquency on your mortgage has already taken place, or will take place in the near future. In these situations, lenders often enter into forbearance arrangements with the homeowner in question. Before making a process like this official, your lender will conduct a financial audit to determine your suitability as well as the financial hardships that you are having to deal with.
The benefits of forbearance
- Time. It’s one of the real benefits of the forbearance process. There are many instances when a homeowner simply needs a bit of time to get back on their feet and resume the responsibility of making their mortgage payments. Time could be needed to find another job, or to recover from high medical bills. Whatever the reason, time is often all that is required to get things back on track.
- While the forbearance process is in place, the homeowner is shielded from any foreclosure proceedings, as well as any harassment related to the collection of debts. There is relief in knowing that not only is there a window of time that has been made available in which to regain financial stability, but also that the process of recovery can take place free from any immediate pressures.
Some lenders do require a partial payment during the forbearance phase as part of the agreement, but there are many lenders who require no payment at all. Clarity on this issue must be obtained from the relevant lender directly. The relevant agreement will contain information about the terms and conditions governing the forbearance program, including the length of the period and any outstanding payment due once the period comes to an end. If delinquency on the mortgage continues once the forbearance period has run its course, the threat of foreclosure becomes a real possibility.
A long-term solution
While it’s true that a forbearance agreement can provide a struggling homeowner with some much needed relief from financial pressures, even if only for a while, it is not the most effective long-term solution in the face of sustained financial hardship. Homeowners who are struggling to save their home from foreclosure would do well to investigate the merits of home loan modification. The modifying of a mortgage can result in significantly more affordable loan payments over the entire term of the loan, and the business of securing loan modification approval need not be a complex and confusing one.
Mycaal.com was empathetically engineered with the struggling homeowner in mind, providing clear, thorough and accurate support throughout the entire loan modification process. Importantly, it also provides the homeowner of a solid understanding of how they pre-qualify for a loan modification before they officially submit their application, which enables them to do so with peace of mind, knowing exactly where they stand and what they are entitled to.
Visit Mycaal.com today to find out how your financial situation can be transformed for the better.